Strategic Acquisition in Silicon Valley
Global logistics and industrial real estate firm Goodman Group has reportedly acquired a significant property in San Jose, California, that is currently being rezoned for data center development, according to industry reports. Sources indicate the company paid approximately $200 million for the 46.8-acre site located at 350 and 370 W. Trimble Road, marking another substantial investment in the region’s digital infrastructure.
Property Details and Development Plans
The acquisition, documented in Santa Clara County property records, involves the purchase from an affiliate of LBA Realty. The site is currently occupied by lighting manufacturer Lumileds and includes adjacent vacant land. According to the report, earlier this year LBA Realty filed applications to construct two data centers on adjoining plots at the location.
Development plans reportedly call for a 206,300 square foot data center on an 18.1-acre plot, which would also accommodate offices and an electrical substation. A second facility spanning 208,000 square feet is planned for a 10.3-acre parcel. The property’s intended use has evolved over time, having previously been earmarked for residential, retail, and office development before being designated for manufacturing.
Growing Data Center Presence
Analysts suggest this acquisition aligns with Goodman’s strategic expansion into the data center sector. The company, traditionally focused on logistics and industrial real estate, claims to have a global power bank of 5GW across 13 cities, with 2.7GW secured and 2.3GW in advanced procurement stages. Goodman has data center projects in various stages of development across multiple countries, including recent activity in California where the company recently topped out a 32MW facility in Los Angeles.
The rezoning process for data center use represents a significant shift for the property and reflects the growing demand for data center capacity in the Silicon Valley region. Industry observers note that the transaction follows Microsoft’s 2021 acquisition of adjacent land for $78 million, though development on that property has yet to materialize according to previous reports.
Market Context and Industry Trends
The substantial investment in San Jose property comes amid broader industry developments in digital infrastructure. While the specific development timeline for the newly acquired property remains unclear, the transaction demonstrates continued confidence in the data center market despite economic uncertainties affecting market trends.
Property records available through commercial real estate databases confirm the transaction details, though neither company has publicly commented on the purchase or specific development plans. The deal highlights how strategic acquisitions are shaping the technology landscape, similar to how related innovations in other sectors are driving property demand.
As the data center industry continues to evolve, major players like Goodman are expanding their portfolios through strategic acquisitions in key markets. The San Jose purchase represents another chapter in the company’s diversification beyond its traditional logistics focus into digital infrastructure, joining other prominent organizations making strategic investments in growing sectors.
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